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The only asset of EZ. Corp. is a project. The firm will raise $50 million today and invest it in the project. The project will
The only asset of EZ. Corp. is a project. The firm will raise $50 million today and invest it in the project. The project will result in unlevered free cash flow of $16 Million each year for the next 5 years. The unlevered cost of capital for the firm is 8%. Out of the $50 million of initial investment, for the project, $20 million will be in the form of debt. . The firm will repay $4 million of debt back in each of the next 5 years. The cost of debt is 6%. The corporate tax rate is 20%. The firm has 100,000 shares. Determine the share price
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